As the chart from the Wall Street Journal shows, Wal-Mart has increased Gross Margin consistently since the Great Recession began. But it has also suffered 9 quarters of declining US same-store sales. This is the key metric for any retailer.

As Wal-Mart’s COO, Bill Simon has told analysts, “I think the gross margin could be an impediment to sales growth.” The financial focus meant less attention was paid to customers’ changing needs:

Many consumers are now living from pay-check to pay-check. They simply can’t afford to buy large sizes, even though these offer better value. As a result, they prefer the ‘Dollar Stores’, where they can cover their basic needs for the week ahead.

Wal-Mart is still the world’s largest retailer. But it will now have to move quickly, to catch up. Chemical company boards need to review their own strategies, to ensure they are not making the same mistake.